I am not sure what to make of the whipsaw action in the ProShares UltraShort Inverted SPY ETF (SDS) since Friday morning's surge that tested the January-February resistance line at 64.20. However, technically, that test failed! Now we find the price structure probing the vicinity of its opposite number: its January-February support line, now at 60.60, which must contain any forthcoming weakness to avert a potential downside acceleration (that represents a powerful advance in the major equity market ETFs). If the bears were in the drivers seat last Friday morning, they now find themselves on the defensive.

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Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.